Three ETFs To Play Rising Rice Prices

Poor weather conditions around the world may result in a supply shock, pushing rice, grain and other agricultural-based commodities higher and giving positive price support to the ELEMENTS Rogers Intl Commodity Agri ETN (RJA),  the PowerShares DB Agriculture Fund (DBA) and the iPath DJ-UBS Agriculture TR Sub-Idx ETN (JJA).

According to the UN Food and Agriculture Organization, Thailand witnessed the its worst flooding in more than 50 years resulting in nearly 13 percent of the nation’s rice crop to be destroyed.  This is vital to global supply as that Thailand accounts for more than 30 percent of global rice exports.  Read more of this post

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4 ETFs To Play Rising Meat Prices

Imbalances in supply and demand continue to take its toll on food prices as the price of meat continues to rise, giving positive support to the PowerShares DB Agriculture Fund (DBA), the iPath Dow Jones-UBS Livestock Subindex Total Return ETN (COW), the Market Vectors Agribusiness (MOO) and the PowerShares Global Agriculture Portfolio (PAGG).

According to the United Nation’s Food and Agriculture Organization’s meat index, beef and sheep prices are at an all time high and poultry and pig meat costs are on the rise. On the demand side, demand in much of the developed world like the US remains intact, while demand in the developing world for meat continues to rise.  According to the US Department of Agriculture, demand in Asia, in particularly South Korea, Hong Kong and China continues to rise.  Furthermore, demand is expected to remain elevated in the near-term future as disposable income in developing nations continues to increase. Read more of this post

4 ETFs To Play Coffee’s Jump

Continuing imbalances in supply and demand have pushed coffee prices to 30-year highs and are expected to continue to provide positive price support to the soft commodity. 

Over the past year, coffee prices have nearly doubled as production has suffered due to weather conditions in Colombia and parts of Africa.  In Colombia, storms seen last year damaged harvests curtailing production by as much as 10 percent in the current quarter.  To put it into perspective, output in April from Colombian coffee producers declined by 19 percent from a year earlier. Read more of this post

5 ETFs To Play Rising Prices

As the US government has resorted to excessive spending measures to keep the economy from completely crumbling, many investors suggest that inflation is inevitable and is likely to prevail in the near term future.

Current economic data suggest that inflation is relatively tame, but prices are on the rise.  In April, the Consumer Price Index, also known as the CPI, rose by 3.2 percent from a year earlier marking the fourth straight month of rising prices.  Furthermore, these increases in prices had already emerged in the retail sector as rising prices of cotton, wheat, sugar, crude oil and other raw materials have forced companies like Starbucks (SBUX), McDonalds (MCD) and Levi Strauss to raise prices and pass the impact through to the consumer.   Read more of this post

Seven ETFs To Fight Inflation

Although current US economic data indicates that inflation is relatively subdued, there are numerous reasons to suggest that rising prices are on the horizon.

Rising commodity prices have already prevailed as demand for corn, wheat and soybeans around the world continues to outpace supply and political unrest has sent the price of WTI crude oil north of $109 per barrel.  Furthermore, inflation has already prevailed in much of the developing world causing the People’s Bank of China to increase its benchmark one-year lending rate to 6.31 percent and its one-year deposit rate to 3.25 percent.  A similar tune was heard in India, when its central bank raised the cost of borrowing for the eighth time in nearly one year.  Read more of this post

Four ETFs Likely To Be Impacted By US Corn Production

According to the latest data reported by the U.S. Department of Agriculture, U.S. farmers are expected to increase corn production, which could potentially influence the Teucrium Corn ETF (CORN), PowerShares DB Agriculture Fund (DBA), Market Vectors Agribusiness (MOO) and PowerShares Global Agriculture (PAGG).

Major imbalances in supply and demand have pushed agriculturally-based commodity prices such as corn, wheat and cattle through the roof.  Inclimate weather around the world has taken its toll on production, while increasing purchasing power in developing nations, coupled with growing populations around the world, has pushed up demand.  In fact, the USDA reported earlier this year that corn reserves were at a 15 year low.  Corn is a vital commodity due its uses in packaged foods and its importance in livestock production. Corn is often used by farmers and ranchers to fatten up their herds of cattle and chicken to produce more meat, eggs and milk.  Read more of this post

Three ETFs To Cash In On Rising Beef Prices

An ever widening gap in supply and demand continues to prevail in the US cattle markets, pushing up prices and providing positive support to the PowerShares DB Agricultural Fund (DBA), the iPath Dow Jones-UBS Livestock Subindex Total Return ETN (COW) and the UBS E-TRACS CMCI Livestock TR ETN (UBC).

According to the US Department of Agriculture, beef exports surged by 19 percent last year resulting in the smallest US cattle herd since 1958.  On the demand side, worldwide demand for beef is near an all time highs as purchasing power and the middle class in emerging markets continues to grow.  In fact, demand in Russia, South Korea, Hong Kong and Taiwan has grown at exponential levels, pushing US exports to their highest levels in over seven years.    Read more of this post